Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/141850
Authors: 
Goel, Rajeev K.
Nelson, Michael A.
Year of Publication: 
2016
Series/Report no.: 
CESifo Working Paper 5873
Abstract: 
To synthesize the literature on determinants of the shadow economy, this paper uses three cross-national shadow economy measures and employs numerous determinants over hundreds of model combinations to identify robust determinants of the shadow economy and address modeling uncertainty. We find that bureaucratic complexity is more significant than monetary severity in driving shadow activity. The incentives of new shadow entrepreneurs are somewhat different. A one standard deviation increase in tax complexity increases overall shadow economy by over ten percent of the mean. In contrast, a similar increase in business startup costs increases new informal entrepreneurs by almost more than double.
Subjects: 
shadow economy
robustness analysis
modeling uncertainty
entry barriers
development
taxes
JEL: 
M13
H26
K42
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.